Quote:
Originally Posted by mynewx5
We have this coverage with GEICO. It seems like a very good deal with a few important points to note. One, the first four (or so) years you are paying for coverage that you can't use as the BMW factory warranty is in effect. Two, if you leave GEICO at any point you will obviously lose the warranty coverage.
Worst case scenario, you keep GEICO for 3 years and 11 months and then change insurance to another carrier. You are out $517.00 max. Best case scenario you have a covered repair in year four, five or six and save thousands. To me its worth a $517 gamble as we plan to stick with GEICO barring unforeseen circumstances.
If you are the kind of person who likes to shop your auto insurance around and switch companies every few years this is not going to benefit you. If GEICO is competitive in your zip code and you plan to stick with them it can be a great value.
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The part about paying for the first four years but getting no coverage I understand. But that's not really any different than buying an extended warranty when a car is new since it does not kick in until year 4. I guess you can put off that warranty purchase, but I imagine that most buy at the time of sale.
I am guessing you have not had this coverage long. Do you know if they charge everyone the same rate ($11 per month) regardless of the type of car? Do you have any sense if they jack up the rates ruthlessly in year 5?